WASHINGTON, Dec 6 (Alliance News): The World Bank has announced that it raised nearly $24 billion to boost its concessional lending arm, the International Development Association (IDA), which will help generate a record $100 billion in total spending power to support the world’s poorest nations.
Donor countries pledged $23.7 billion, marking a slight increase from the $23.5 billion raised during the last replenishment round three years ago.
This funding allows the World Bank to leverage its resources by borrowing on financial markets, effectively quadrupling the amount raised to finance new loans and grants.
World Bank President Ajay Banga hailed the funding as a significant show of support from donors and clients, noting that it would be used to aid 78 eligible countries.
“This funding will help provide resources to invest in health, education, infrastructure, and climate resilience, while stabilizing economies and creating jobs,” Banga said.
The announcement followed two days of discussions in Seoul, South Korea, where political tensions over martial law in the country created a backdrop of uncertainty.
The IDA remains a primary source of concessional climate finance, with about two-thirds of its funding over the past decade directed to African countries.
IDA replenishments occur every three years and are heavily supported by major donors such as the United States, Japan, and European nations like the United Kingdom, Germany, and France.
This year, the U.S. pledged a record $4 billion, with other countries, including Norway and Spain, also increasing their contributions.
Since the IDA’s inception, 35 former recipients, including China, Turkey, and South Korea, have graduated from developing economy status and are now contributing to the fund.
